Administration Sen. Juan Miguel F. Zubiri, committee chairman, said approval by the House is necessary as economic managers reported that the country posted only a 4.6 percent growth in gross domestic product (GDP) during the first half of the current fiscal year, down from the 8.3 percent for the same period last year.

The Senate approved the measure on third and final reading two weeks ago.

‘’This measure will modernize and reform at least 74,809 operational cooperatives with millions of members,’’ Zubiri said. ‘

"This was the first time that the Senate beat the House of Representatives in approving the proposed amendments to the Cooperative Code since it was tackled in the past four Congresses,’’ said Zubiri, a former House member.

In many areas, Zubiri said, cooperatives provide the services the government is unable to provide, and "these coops are really the catalyst for growth in many of the depressed and marginalized areas in the country.’’

‘’Many credit coops fulfill the financial needs of the poor without voluminous documentation and collateral that banks and other financial institutions require. The borrowers, being members and owners themselves, actually get a higher rate of return because they get patronage refunds and dividends,’’ he said.

Zubiri said cooperatives also carry the heavier burden to deliver livelihood opportunities and secure jobs for their members with R42 billion in assets at their disposal.

‘’We now have a shrinking job market as growth of consumer spending is down 3.4 percent from 5.6 percent a year ago and growth in government spending also droppeded to 5.1 percent from 11.9 percent last year,’’ he stressed.

‘’The entire cooperative sector has generated 1.636- million jobs in 2006, 1.563- million jobs in 2005, and 1.498 million jobs in 2004. The century cooperatives or those with at least R100 million in assets have great power to work for their members’ economic welfare,’’ he said. ‘

’If we lay down a red carpet of incentives for giant foreign investors, this Code does the equivalent for Filipinos who invest in their future through self-help. We owe it to them to reduce their risks and give them a wider room to achieve their objectives,’’ he said.

He said the tax incentives being enjoyed by cooperatives were retained, and additional privileges were given by the Senate.

These are: Preferential treatment on the allocation of fertilizers, including seeds and other agricultural inputs and implements, and in rice distribution; management of public markets or lease of public market facilities, stalls, or spaces to those whose primary purpose is production or the marketing of products from agriculture, fisheries, and small entrepreneurial industries and federations; fFinancing support for public transport service cooperatives; creation of a window for financing housing projects undertaken by cooperatives; preferential right for faculty members and employees in the management of canteens and other services, related to the operation of educational institutions; recognition of other types of coops such as education, housing, health services, advocacy, fishing, and others. ‘

"We also strengthened provisions on the institution of a social audit system to ensure that the coops are socially responsible, implement livelihood programs, and environmentfriendly project,’’ Zubiri said. ‘’Far-flung communities that hardly feel the consistent presence of government most often have at least one association trying to meet their basic needs.

"We empower the existing 74,809 cooperatives nationwide and encourage loose organizations to convert into full-fledged cooperatives enjoying many incentives, as well as the protection of the law,’’ he said.

Zubiri said the amendments would "’make it easier for people with similar needs or common bonds of interest’’ to form cooperatives, while it makes it harder for the unscrupulous to subvert the cooperative concept for selfish interests.’’

‘’Although two- thirds of registered cooperatives continue to be operational, we still want to see more achieving the status that they desire,’’ he said. ‘’We want to eliminate the casualty list of cooperatives as well as victims of pseudo-cooperatives by giving greater powers to the Cooperative Development Authority (CDA) and handing back power to the member through the General Assembly,’’ he explained.

The CDA reported that 74,809 cooperatives have been registered since 1990 broken down tvto 4,812 savings and credit cooperatives; 1,369 consumer cooperatives, mostly in public and private offices and schools; 1,409 producers’ cooperatives; 911 marketing cooperatives; 1,806 service cooperatives, providing power distribution, potable water and irrigation system, public and private transportation service; and 60,000 registered multi-purpose cooperatives, which are divided into Agricultural and Non-Agricultural Cooperatives.

"’Today, because of this proposed mandatory law, the cooperative movement has new resonance in the face of the economic difficulties we confront collectively,’’ the senator said.

To complement the proposed amended Code, the Senate cooperatives committee is amending the CDA charter.